Crop production grew by 813.3% compared to the first six months of fiscal year 2011, reaching 800.7 thousand tons, thanks to the consolidation of our subsidiary BrasilAgro and the late harvesting of part of our corn plantations in our Argentine farms.

Beef cattle production grew 49.2% compared to the same period of the previous fiscal year, generating a 121.8% increase in production income. Operating income from this business fell 98.4%, because holding results were ARS 42.3 million lower. This was caused by the fact that during this semester, prices grew at a smaller pace than in the same period of the previous fiscal year.

As concerns milk production, we have continued to observe productivity increases thanks to the consolidation of production in our "El Tigre" dairy facility. During this semester, our milking herd generated 22.8 liters per milking cow per day, 15.9% higher than during the same semester of the previous fiscal year.

Operating income totaled ARS 404.4 million, a 12.5% increase compared to the same semester of the previous fiscal year. This increase was motivated mainly by the good results recorded in the real estate segment (22.6% higher) and in crop production, which generated operating income for ARS 18.0 million compared to a loss of ARS 26.0 million during the same period of the previous fiscal year.

Net income for the period was ARS 41.5 million, compared to ARS 107.0 million for the first six months of the previous fiscal year. This was caused mainly by a net financial loss of ARS 300.8 million, compared to ARS 121.1 million in the same period of the previous fiscal year. The main reason for this decrease was a net loss from exchange rate differences, due to the depreciation of the exchange rate that affects our liabilities denominated in dollars, for ARS 100.3 million (vs. ARS 13.9 million), and a net loss from other financial assets for ARS 31.7 million (vs. a net income of ARS 9.9 million) mostly due to the revaluation at market values of certain financial assets held by our subsidiary IRSA. In the quarter ended December 31, 2011, these assets generated positive results.

During this fiscal year we will continue to develop new agricultural areas, as we have done during the past years. We expect to add nearly 28,500 new hectares in the whole region, 19,800 of which will be developed in Brazil in six of the farms we own in that country. In Argentina, we will add 7,850 hectares in our "Los Pozos" and "La Suiza" farms and the farm we have in concession. Moreover, we will add 750 new hectares in Paraguay and 100 hectares in Bolivia.

During this quarter, the core agricultural region of Argentina experienced severe drought conditions caused by La Nina. This is expected to cause losses in the production of corn and soybean at national level. Fortunately, during the last weeks prior to the publication of this release it has rained in the region, attenuating the above mentioned consequences.

The company foresaw this weather effect and postponed planting, applying specific processes aimed at mitigating its impact. Although most of Cresud's production portfolio is located in marginal areas that are far from the region affected by the drought and have recorded good rainfall levels, we expect that in view of their location, the farms leased from third parties will be affected by this phenomenon. Should the current conditions subsist, we expect that the impact of this drought will not generate a reduction in crop production higher than 10%. This fall might be compensated by an increase in prices during the quarter.

On October 31, 2011, our General Shareholders' Meeting resolved to pay a cash dividend of ARS 63.8 million, equivalent to ARS 0.138 per share, or a dividend yield of 2.62% as of the date it was announced. The dividend was made available to the shareholders during the month of November.

Cresud is a leading Argentine agricultural company with a growing presence in the Brazilian agricultural sector through its investment in BrasilAgro-Companhia Brasileira de Propriedades Agricola. Cresud is currently involved in a range of activities including crop production, cattle raising and milk production. Cresud's business model, which is being rolled out regionally in Latin America, taking into account the specific conditions of each country, focuses on the acquisition, development and exploitation of properties having attractive prospects for agricultural production and/or value appreciation and the selective disposition of such properties where appreciation has been realized.

Additionally, Cresud owns a 63.22% stake in IRSA Inversiones y Representaciones S.A., Argentina's largest, most well-diversified real estate company. Through its subsidiaries, IRSA manages an expanding top portfolio of shopping centers and office buildings, primarily in Buenos Aires. The company also develops residential subdivisions and apartments (specializing in high-rises and loft-style conversions) and owns three luxury hotels.

A longer version of this press release with detailed information is available on the web site: http://www.cresud.com.ar.

Cresud cordially invites you to participate in its six-month period of Fiscal Year 2012 Results Conference Call on Thursday, February 16, 2012, at 9:00 a.m. Eastern Time

If you would like to participate, please call: United States: (888) 841-3494International: +1-(706) 758-3350